Iona Energy sale to Bridge in jeopardy in light of financing issues

By Caroline Salls

Pittsburgh, Aug. 22 – lona Energy Co. (UK) Ltd.’s proposed sale of the company to Bridge Petroleum 2 Ltd. has been delayed, and Bridge may not be able to complete the transaction, according to a news release.

Specifically, Bridge informed Iona’s administrators that uncertainties have arisen in its process to secure funding for an Orlando development, impacting its ability to access the funding necessary to close the sale.

The sale and purchase agreement with Bridge was extended to Aug. 31 from Aug. 1, and Bridge agreed to cover specified Iona operating costs. Iona said further extensions are expected to be needed in September, subject to the demonstration of satisfactory progress.

In light of this situation, Iona said its administrators are developing contingency options, which may include a remarketing of the company to alternative buyers.

The sale was originally expected to be completed in July.

Iona Energy is a Calgary, Alta., oil and gas company with assets in the United Kingdom’s North Sea.

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